Why Aren't All Laterals the Same Length?

Why aren't all lateral lengths the same? Companies often brag about their growing average lateral length in their investor presentation, but still drill many short ones. So, why even drill short ones when everyone's bragging about long and super-long ones? In this video, we address these questions and more. We even explain what laterals are for those of you who are not as familiar with our industry. Be sure to check out the video, but below is a quick recap for those pressed for time. Truth is, there are multiple operational challenges and risks to drill and complete a longer lateral. While it provides a greater exposure to the formation of interest and typically leads to increased production, there are multiple cons. While drilling, it can be hard to keep the hole clean by circulating, thus multiple sweeps might need ran to regularly clean the hole. There can also arrises a greater risk of severe doglegs, or sudden changes in the well's direction. Longer laterals can also increase the time to complete the well due to longer wireline run times. It can also increase drillout costs due to the fact that coil tubing cannot typically drillout all of the plugs in such a well. Thus, the operator will likely have to use dissolvable plugs or bring in a workover rig with a snubbing package. Despite these downsides, wells with a longer lateral typically have better overall economics due to the lower cost for drilling and increased production. However, the mixture of short and long lateral wells will be decided by the operator. Each operator will have their own philosophies on what their ideal lateral length is in which the risk is minimized and the economics are strong. Of course, one of the biggest determining factors on lateral length will be the amount of continuous land a company has. A 10,000 ft lateral cannot be put somewhere where there is not 10,500+ feet of continuous land that the company has rights to develop. Be sure to check out our courses designed to help you learn the basics of our industry. In our courses, we cover the steps of drilling a well, permitting, equipment, the directional drilling process, and so much more. We've even got videos! Be sure to check them out at www.OilfieldBasics.com/learn and see what you can discover next.